Lic Efap

If the life assured dies during the policy term (provided all premiums paid up to date):

Definition of Sum Assured on Death:
Higher of:

LIC EFAP encourages higher coverage by offering rebates on premium: lic efap

Additionally, high premium rebates apply for yearly vs. monthly modes.

| Feature | LIC EFAP (861) | LIC Jeevan Labh (Plan 836) | LIC Jeevan Umang (Plan 945) | |---------|----------------|----------------------------|------------------------------| | Participation | Non-Participating | Non-Participating | Participating (with bonuses) | | Returns | Guaranteed Additions | Guaranteed Additions + FAB | Reversionary + Final bonus | | Term | 10–20 years | 10–16 years | 100 years minus entry age | | Premium Paying Term | Same as policy term | Same as policy term | Limited pay (e.g., 15, 20 yrs) | | Maturity Age | Max 75 | Max 75 | Max 100 (whole life) | | Ideal for | Mid-term savings | Short-to-mid term savings | Lifetime income & legacy | If the life assured dies during the policy

Verdict: EFAP is ideal for employees looking for guaranteed, simple, and transparent returns without market risk.

| Parameter | LIC EFAP (Table 914) | LIC Jeevan Labh (Table 936) | LIC New Jeevan Anand (Table 915) | | :--- | :--- | :--- | :--- | | Premium Payment Term | Equal to policy term | Limited (16/25 years) | Equal to term | | Maturity Benefit | SA + Bonus | SA + Bonus | SA + Bonus + Accidental benefit equivalent to SA | | Death Benefit | SA + Bonus | SA + Bonus | SA + Bonus + SA again (double cover) | | Term Range | 12-35 years | 16/25 years only | 15-35 years | Definition of Sum Assured on Death: Higher of:

On survival till the end of the policy term, the policyholder receives:

This lump sum can be used for retirement planning, children’s higher education, marriage, or purchasing a home.

| Section | Benefit | | :--- | :--- | | Section 80C | Premium paid (up to ₹1.5 lakh per year) deductible from taxable income. | | Section 10(10D) | Maturity/death claim proceeds are tax-free (subject to conditions: premium ≤ 10% of sum assured for policies issued after 1 April 2012; for policies issued after 1 April 2023, limit is 15% of sum assured). |

Note: If premium exceeds these limits, proceeds may be taxable under “Income from Other Sources”.